US embassy cable - 03FRANKFURT3946

UNCLAS SECTION 01 OF 02 FRANKFURT 003946 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV, PINR, PREL, ECON, GM 
SUBJECT: SAARLAND SPD LEADER CRITICIZES CHANCELLOR SCHROEDER 
 
1.  (SBU) Summary: During his April 30 trip to Saarland, the 
Consul General met 34-year-old Saarland opposition leader 
Heiko Maas in Saarbruecken.  The Consul General and Maas, 
who is the state SPD chairman and Landtag caucus leader, 
spoke about economic issues, including Agenda 2010 and the 
upcoming Saarland state elections.  Later, four members of 
parliament joined for a discussion on Iraq.  Maas was 
critical of Schroeder's approach on social reform and 
faulted the chancellor for "breaking his promise" on Iraq. 
Maas has gained visibility in recent months by taking an 
active role in the discussion of the Agenda 2010 reform 
plan.  He will challenge Saarland Minister-President Peter 
Mueller (CDU) in the fall 2004 state elections.  End 
summary. 
 
Maas: Saarland Successfully Achieves Structural Change 
--------------------------------------------- --------- 
 
2.  (U) Heiko Maas, Saarland's SPD leader, is one of the 
"young Turks" in the SPD national presidium.  In an April 30 
meeting with the Consul General in Saarbruecken, he 
described the economic structural reforms in Saarland as 
successful.  When questioned by the Consul General about 
economic prospects in the state, he said that many of the 
infrastructure projects that are now paying off, had their 
origins in the previous SPD administration.  Maas mentioned 
the Ford plant in Saarlouis, the cornerstone for a growing 
automotive sector in the Saarland, as a prime example. 
According to Maas, the automotive sector employs about 
40,000 people in Saarland.  Nobody in the SPD, said Maas, 
disputes the necessity of phasing out the coal industry.  He 
mentioned renewable energy, nanotechnology and steel as 
future growth industries in Saarland. 
 
Critical of Agenda 2010 and Iraq policy 
--------------------------------------- 
 
3.  (SBU) Saarland has a majority CDU government, and Maas 
said if the state elections were held today, the SPD would 
lose to popular Minister-President Peter Mueller.  It is not 
enough for the SPD to simply press for reform of the social 
welfare system.  Maas cited the U.S.'s successful economic 
reform measures.  The Bush administration's policies gave 
money back to the consumers and created investment.  When 
the Consul General pressed for more details, Maas suggested 
lower taxes for middle and low incomes, while delaying tax 
reductions for the wealthy.  Maas cautioned that Schroeder 
is skeptical of this.  Measures to increase investment are 
necessary, but conflict with the Maastricht criteria, Maas 
admitted.  Maas said that the money saved because of the 
Koch-Steinbrueck proposal (which advocates cutting public 
subsidies by ten percent) should not only be used for debt 
reduction, but could be redirected in part to promote growth 
industries.  Referring to the Agenda 2010 social reform 
plan, Maas declared early retirement (and thus earlier 
pensions) as the biggest problem in the social welfare 
system.  People rarely stop working after they "retire."  To 
reduce unemployment benefits across the board would be a 
mistake.  Maas would prefer cuts that take the age of the 
recipient into consideration. 
 
4.  (SBU) The Consul General closed the discussion by asking 
for Maas' thoughts on Chancellor Schroeder's political 
performance thus far.  In a critique of Chancellor 
Schroeder, Maas said it was necessary for the government to 
keep its promises.  Maas, who abstained on the Agenda 2010 
vote in the SPD presidium, said he had experienced 
Schroeder's broken promises all too often.  He mentioned the 
promise not to raise taxes as an example.  On Iraq, Maas 
said: "Schroeder's position was not consistent.  To promise 
the U.S. administration support on Iraq and later change 
that line without notification was a mistake."  Maas and the 
other SPD parliamentarians emphasized to us that it was 
important to distinguish the political realities of German 
politics from personal relationships that made up the U.S.- 
German partnership.  Maas agreed with Consul General's 
assessment that U.S.-German relations are still solid and 
broad.  All politicians were keen to "built a common bridge" 
between Germans and Americans. 
 
Comment 
------- 
 
5. (SBU) Since the SPD lost power in Saarland in 1999, Heiko 
Maas has been trying to overcome the legacy of his 
predecessor Oskar Lafontaine and give the Saarland SPD a new 
image.  Maas, who is on the left wing of his party but a 
pragmatic Social Democrat, has consolidated his power base 
and is now the undisputed leader of the Saarland SPD.  He 
will challenge Minister-President Peter Mueller (CDU) in the 
2004 state elections.  Because of his reaction to the Agenda 
2010 reform plan, Maas has gained national recognition.  He 
is one of the most outspoken opponents of the plan, but 
tries to mediate between supporters and critics.  His 
reaction was very reserved when we mentioned Lafontaine and 
Ottmar Schreiner, a member of the left wing in the Bundestag 
caucus.  To win the 2004 elections, Maas will have to 
energize his party without alienating the many Lafontaine 
supporters.  He intends to use the former Minister-President 
in the election campaign to help reach out to these 
Lafontainistas.  In return, Lafontaine has promised not to 
run for public office again.  When assessing the viability 
of this electoral strategy, one must bear in mind 
Lafontaine's reliability (or lack thereof.)  End comment. 
 
BODDE